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Forner, Inc., manufactures and sells two products: Product 21 and Product 28. The company has an activity-based costing system with the following activity cost pools,
Forner, Inc., manufactures and sells two products: Product 21 and Product 28. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: 6 Expected Activity Activity Cost Pools Labor-related Machine setups Order size Estimated Activity Overhead Measures Cost DLHS $112, 190 setups 40,440 MHS 609,778 $762,400 Product zi Product 28 600 2,000 500 700 3,000 3,200 Total 2,600 1,200 6,200 The activity rate for the Machine Setups activity cost pool under activity based costing is closest to Multiple Choice O $203.26 per setup $190.55 per setup O O $122.97 per setup O $33.70 per setup
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